The US government just caved to a crypto exchange pulling support for legislation that changes everything for investors
The Senate postponed a key crypto bill after Coinbase withdrew its support over concerns about stablecoin rewards and tokenized equities.Summary
The US Senate Banking Committee postponed a vote on the Digital Asset Market Clarity Act, Washington's most advanced attempt to regulate the $3 trillion digital asset market, following Coinbase's public rejection of the bill. Coinbase CEO Brian Armstrong cited concerns over a "de facto ban" on tokenized equities and provisions that would "kill rewards on stablecoins," effectively vetoing the measure designed to clarify agency jurisdiction between the CFTC and SEC. While Coinbase opposes the current draft, many industry heavyweights, including a16z, Kraken, and Ripple, support the bill as necessary for US competitiveness. Furthermore, the legislation faced pressure from traditional finance, particularly regarding stablecoin yield, as banking groups warned that rewards could siphon deposits from regulated banks. The delay signals a fractured crypto lobby and leaves the industry in regulatory uncertainty while global rivals advance their frameworks, meaning the path forward hinges on resolving concrete economic trade-offs regarding stablecoin incentives and SEC jurisdiction.
(Source：CryptoSlate)